Friday 20 May 2011

Obtaining a Fleet Operator's Licence

Before anyone can carry on a business of running goods vehicles they must obtain an operator’s licence from the Traffic Commissioner of that particular area. Unless the vehicles used are exempt or are classified as a small vehicle which, if plated, has a weight not exceeding 3.5 tonnes or if not plated unaided weight does not exceed 1.525 tonnes. If either is drawing trailers it is the combination of the two only if the trailer weight exceeds 1.02 tonnes. Also applies to small articulated type vehicles.

This is ensuring the quality of performance and safety standards are maintained.
There is a list of exemptions and the uses which they can be exempt.
There are three types of licences:

1. Restricted
 Used in connection of the holders business is collecting and delivering their own goods within the UK and abroad, hired, bought, sold or processed in connection with that business.
The type of licence does not require a CPC Transport managers licence but merely needs a responsible nominated person usually a director but can be devolved to another responsible person.

2. Standard
This allows goods to be carried for higher and reward in the UK and allows trailers to be collected from ports.

3.Standard International
This allows goods to be carried in the UK and abroad for hire and reward.

To hold a licence the applicant must be a person of good repute and must disclose convictions in the last five years, have proof of appropriate financial standing, capital reserves for each and subsequent vehicles of £8,100 and £4,500 respectively for a restricted licence £3,100 and £1,700. Must be professionally competent. At least one transport manager or more if the traffic commissioner decides where that person for whatever reason cannot continue commissioner to be informed and may allow continuing to operate for up to twelve months.

There are eight traffic areas in the UK licence required for each area in where the business operates.
A CPC holder remains the holder of that licence but not an operator’s licence when changing employment. Where good repute is questioned the holder must be given the opportunity to defend their interests
Any application must be shown in local newspaper once within twenty one days. This will allow local land owners and occupiers to lodge objections.

The applicant must adhere to strict conditions environmentally and where vehicles are concerned there use and maintenance. If objections are raised after the twenty one days and after the granting of the Operator’s licence they will be kept for five years for when the renewal is due.

The licence if all the criteria are met and bearing in mind that the commissioner has the final say on how many vehicles are to be included on the licence, will grant the licence. This will also be subject to a large body including police transport bodies, local authority and unions who are able to object.
An operator cannot change vehicles or increase the size of the fleet without first notifying the traffic commission for the area, there bare provision for temporary changes to cover for break downs.
Where a licence is no longer required it must be returned. Where there is a death of the holder or the holder becomes bankrupt the licence can be retained by the new operator for up to eighteen months.
The operators licence can be revoked for any of the following;
  • Contravening the conditions,
  • Making false statements or expectations of development of the business
  • Bankruptcy or liquidation
  • Change of circumstances material to the business,
  • Convictions such as speeding, maintenance, weights and loading of the vehicles, licences relating to drivers employed driver’s hours and records, unlawful use of fuel and oils and traffic offences.     
The provision of the road traffic act and the compliance by driver’s operators and managers are strictly policed by the authorities.
The CPC holder referred to has to be trained and hold the licence which is only available after the completion of an approved course and passing of an exam.
  
This is by no means a fully comprehensive illustration of what is required but it is hoped it will give the reader and insight of what is required and the financial cost of just setting up a vehicle fleet transport business.
The next article will include Maintenance Arrangements. What is required? The powers of the Traffic Commissioner. Operator Financing, Running cost and they are calculated, Penalties that could lead to suspension or revocation.